Two encapsulation techniques for rabbit chondrocytes in chitosan/hyaluronic acid gel have been compared. The standard technique involves the cross-linking of chitosan and hyaluronic acid at 2:1 (w/w). In the modified technique, cells were initially added to 33 % of hyaluronic acid dialdehyde and the gelation process was completed with the remaining 67 %. This minimised the cell loss and improved the encapsulation of the cells. By the third week, the modified technique showed better seeding density, with matrix synthesis (per scaffold) of 11 mu g as compared to 1.1 mu g in the current technique. Relative expression of collagen II with the current technique and the modified technique were 6.4 % and similar to 1,600 % respectively. The modified technique was superior for matrix synthesis and maintenance of phenotype.